Ask any Finn over 40 about Nokia’s past and they will recall a time when the company made toilet paper and rubber boots. Back in the 70s Finns loved their Nokia wellies for their practical yet fashionable edge. As time went on, of course, the company successfully transferred into mobile phones. These days, though, many in the design community believe bureaucracy and over-engineering have put paid to its cool image, and accuse it of forgetting the crucial end-user experience. But Nokia’s decline hardly marks the swansong of Finnish design; next year, Helsinki takes on the mantle of World Design Capital.

In terms of material, structure and aesthetics, Finnish design has a history of combining extremely radical and liberal thinking. Its first international successes, from the 30s to the 60s, came at a time when Finland was a relatively poor country trying to establish its identity as a modern European nation. Clothing brands such as Vuokko and Marimekko created a name for themselves with bright colours and bold patterns, while architects and furniture designers Alvar Aalto and Tapiovaara drew inspiration from nature with their simple elegance and functionality.

Designers observe similar principles today, as the new Kirkkojärvi School in Espoo demonstrates. The school – which utilises geothermal and solar energy, and has outdoor areas designed to maximise sunlight – won an International Architecture Award in August for architects’ firm Verstas. “We recognise that the children using a school building are going to spend a big part of their childhood and teenage years in it,” says architect Jussi Palva. “We hope that having a building carefully designed for them will make the children feel valued, and possibly even encourage them to observe and appreciate the built environment and their surroundings in general.”

Palva adds that Finland’s liberal atmosphere has been a contributing factor. “Innovation and freedom of thought are an inseparable part of it. It’s easy to be open-minded when the local audience is also open-minded. Our design has its roots in the time when people were dependent on, and had a strong relationship with, the nature that surrounds them.”

But the past can also be a burden, says Tuomas Laitinen from up-and-coming design house The Laitinen Collection. “It’s a great inheritance to have, but we should be able to look at it from a distance. The problem is, at the moment we’re being too nostalgic about the past. Maybe it brings security in these uncertain times. That’s not just in Finland, though – if one looks at international fashion, it has been repeating previous decades for quite a while now instead of creating something new.”

The foundation for any good design is usability, sustainability and desirability, which can be applied to physical products and services. One company observing these principles is Finavia, the firm in charge of Helsinki Airport. The airport is almost 60 years old, and its recent redesign has won a clutch of international awards.

“The way that we interpret and implement Finnish design is to make sure that we forward our passengers smoothly to their next destination,” says Finavia marketing director Kimmo Ruotsalainen. “The key thing is to use the latest in technology, innovative design and personalised service.”

Finns are by nature modest and this applies to the corporate world too, where companies play it safe in terms of marketing and image, according to Laitinen. “Even if they’re hiring talented designers, the companies are too afraid to break from the old ways and build a strong individual identity. Another problem is that sometimes they think too much about functionality. This is obvious when comparing Nokia with Apple,” he says.

Laitinen says that when creating a brand, too few Finnish companies think big from the start. “Finland is an affluent market but very small, so you have to have an international outlook. The challenge is to get the Finnish consumers to pay the same price for a local designer product that they would pay for a foreign one.

“Finnish brands tend to be very subtle in terms of product and image and that is not always the best way to attract the top magazines or buyers. We need a bit more excitement in Finnish fashion. A major magazine editor doesn’t want to shoot a basic T-shirt from a young designer, they want something fresh and exciting.”

The contribution of the public sector is vital. Finnish design education is one of the most respected in the world – and Aalto University’s School of Art and Design, founded in 1871, is one of the largest in the Nordic region. But Finnish designers often struggle to get funding at the crucial early stages of projects because public funding lacks a global perspective.

“In theory we have everything: talented people and money. Somehow that money just never seems to find the right designers,” says Laitinen. “One problem is the officials handing out funding often are not trained in design, nor do they follow it. They may not be able to relate to certain types of aesthetics or understand what is relevant internationally at the moment.”

The notoriously short attention spans of corporate-sector funders only compounds the problem. “Building a successful brand takes a lot of money and it often takes years to make a profit,” adds Laitinen. “The Finnish investors, government and banks should understand this. In design, no matter if it’s shirts or chairs, it’s very difficult to make a quick buck. But in the long run your patience may be rewarded.”

Companies that are focused on both scale and innovation will make it, according to Verstas’s Palva. “A design company should have good control of its product or service-development process and naturally must have good knowledge of the market and clients,” he says. “The quality counts. Success will come simply by creating more attractive products or services that focus on solving clients’ problems and objectives.”

Anne Veinola from the Finnish Design Forum thinks there is an appetite for Finnish design. “Our companies are cost effective and the customer gets value for money. Designers have a high level of professionalism and they are trained to understand the economic importance of design solutions,” she says.

And even with Nokia’s wobbles, Finnish design businesses are brimming with confidence at the moment.

“Finland and Finnish people are often considered, among other things, to be practical and industrious. Success stories can be created again,” said Finavia’s Ruotsalainen. “If you ask any Finn, they will tell you that finding ways to make things better is in our DNA.”